BSNL New Update

State-run telecom company BSNL has experienced a period of highs and lows in recent years. With plans to launch 4G services using the Made in India 4G stack, there were hopes for a turnaround, but it appears a revival is still a bit far away.

This year is critical as BSNL aims to finally launch its 4G services, nearly eight years after private competitors introduced theirs. While private operators have progressed to launching 5G, BSNL has lagged due to various factors.

BSNL’s Struggles and Subscriber Losses

BSNL has faced significant challenges, primarily due to the lack of 4G services. This shortfall has resulted in the loss of 18 million subscribers in the fiscal year 2024 alone.

According to data from the telecom regulator TRAI, BSNL lost nearly 2.3 million subscribers, reducing its user base to just 88.06 million as of March 2024. The deployment work for the 4G network has been slower than expected, further compounding the issue.

The Importance of Rural Connectivity

As India moves towards a digital economy, connectivity across rural and remote areas becomes crucial. BSNL has a vital role to play in this transformation, ensuring that no one is left behind.

The new telecom minister, Jyotiraditya Scindia, has plans to revive BSNL and reestablish it as a formidable player in the telecom industry. BSNL holds strategic importance for the government. With the rollout of 4G, BSNL will be in a position to retain existing customers and acquire new ones.

The government expects a major part of the 4G rollout to happen in the current financial year.

Revival Efforts and Government Support

The government has announced several revival packages totaling Rs 3.2 lakh crore to help BSNL overcome various challenges.

In 2019, the government approved the first revival package for BSNL with an outlay of Rs 69,000 crore, followed by a second package worth Rs 1.64 lakh crore in July 2022. Last year in June, another revival package of Rs 89,047 crore for BSNL was approved, which includes the allotment of 4G-5G spectrum for BSNL through equity infusion.

Revenue Targets and Financial Goals

BSNL has set ambitious revenue targets. The company aims to achieve Rs 35,960 crore in revenue from operations by FY28, up by 80% compared to an estimated Rs 20,008 crore revenue in FY24. From FY25 onwards, the telecom PSU intends to post a 20% year-over-year rise in income. Additionally, BSNL targets an EBITDA of Rs 12,110 crore, compared to an estimated Rs 1,839 crore in FY24.

Challenges with India-Made 4G Stack

One of the significant challenges BSNL faces is the efficacy of the India-made 4G stack, which has yet to be established against competition from global equipment players like Ericsson and Nokia. While private players have rolled out their 5G networks with global equipment, BSNL’s plan to deploy 4G in the 700 MHz band faces hurdles due to the lack of an ecosystem for affordable devices that support this frequency.

The Role of Daily Targets and Monitoring

To ensure the timely rollout of 4G services, the government has formed a performance monitoring unit (PMU) comprising Tejas, BSNL, TCS, and CDoT. This PMU will not set monthly or weekly targets but daily targets,

which will be closely monitored by the telecom minister and the telecom secretary, Neeraj Mittal. This rigorous monitoring will accelerate the deployment process and help BSNL catch up with private operators.

Looking Forward: BSNL’s Role in Digital India

BSNL’s successful rollout of 4G services is crucial for India’s digital future. The company’s role in providing connectivity in rural and remote areas cannot be overstated. With the government’s support and the ambitious targets set,

BSNL has the potential to become a key player in the telecom industry once again. However, the challenges are significant, and the effectiveness of the India-made 4G stack will play a crucial role in determining the success of BSNL’s revival efforts.

Conclusion

BSNL is at a critical juncture. The company’s ability to successfully launch and expand its 4G services will determine its future in the highly competitive telecom market. With substantial government support and a clear strategy, there is hope for BSNL’s revival.

The focus on rural connectivity, combined with the rigorous monitoring of daily targets, provides a structured approach to overcoming the challenges. As India moves towards a digital economy, BSNL’s role in ensuring no one is left behind becomes ever more important. The coming months and years will be pivotal in shaping the future of BSNL and its contribution to India’s digital landscape.

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